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Atascadero council okays 2026 CDBG funding package, directs staff to prioritize youth programs and ECCO operations if funds increase
Summary
Council approved staff'recommended allocations for the 2026 Community Development Block Grant, roughly $176,000 for the city pending HUD final numbers, funding a Viejo Camino sidewalk/ADA project and public-services awards including youth activity scholarships and ECCO navigation-center support.
The Atascadero City Council voted unanimously on Feb. 10 to approve staff'recommended allocations for the 2026 Community Development Block Grant (CDBG) program and authorized staff to proportionally adjust awards if HUD's final grant amount differs from the current estimate.
Public Works Analyst Ryan Betts told the council the city's preliminary allocation is about $176,000, reminding members that the county administers the urban-county program and takes an administrative fee. "City staff expects approximately a 176,000 to be allocated for the city of Atascadero," Betts said, describing required funding distribution categories: public facilities/housing (65% minimum), public services (15% maximum) and administration (20% maximum.")
Staff highlighted recommended uses: a request of $114,000 toward the Viejo Camino sidewalk and ADA improvements (450 linear feet of sidewalk, curb ramps, and a bus-stop connection), support for CAPSLO minor-home-repair/accessibility improvements, and public-services funding for youth activity scholarships and ECCO (navigation-center operations serving unsheltered residents). Staff said ECCO could reach roughly 1,300 people per year across its centers with CDBG support.
Public comment: Resident Jeff Hosland urged approval and said he liked the increased allocation to youth scholarships, noting the scholarships also benefit ECCO clients. "I do like the fact that we are putting a little bit more money into our youth scholarship program," he said, urging council to approve as recommended.
Council action: Council member Funk moved to approve the funding recommendations and to authorize staff to proportionally adjust awards once HUD's final allocation is known; Mayor Pro Tem Derez seconded the motion. The council voted unanimously by roll call.
Follow-up: Council instructed staff to proportionally adjust awards if HUD's final allocation varies and directed that, if additional funds appear in the public-services category beyond the draft, the extra money should be prioritized for ECCO operations, consistent with public comment and council discussion.
Ending: With authorization to adjust awards proportionally and a unanimous vote, staff will finalize awards after HUD releases the official funding amount and will allocate funds consistent with council guidance.
